Bridgepoint Development Capital, the lower mid-market-focused arm of UK private equity firm Bridgepoint, is in talks to takeover funds managed by French private equity firm Edmond de Rothschild Capital Partners, according to people familiar with the situation.

A potential deal could see some of EDRCP’s team move across to Bridgepoint Development Capital’s Paris office, the people said.

A Bridgepoint spokesman confirmed Edmond de Rothschild had made an approach to sell the business.

Edmond de Rothschild Group has chosen to explore a potential sale of its private equity business as it is keen to focus on its core banking activities, according to people familiar with the transaction.

French specialist EDRCP manages approximately €510 million through two funds according to its website, and typically targets buyouts worth between €30 million and €200 million.

Bridgepoint Development Capital, the small-cap sister to UK buyout fund Bridgepoint, typically invests in deals worth up to €150 million.

According to people familiar with the matter, a potential sale has not yet been agreed and Bridgepoint is currently weighing the quality of both EDRCP’s investments and management team before deciding on finalising the transaction. Bridgepoint will also consider the compatibility of its existing team and EDRCP’s management before pursuing the takeover, the people said.